Financial Markets Daily Report27 February 2024
Financial markets started the week with a slight risk-averse tone as investors await inflation data, to be released later this week, that will be key in determining interest rates’ future path. Sovereign bond yields rose across the board, while equity indices edged lower in the US and the euro area.
- Financial markets started the week with a slight risk-averse tone as investors await inflation data, to be released later this week, that will be key in determining interest rates’ future path. Sovereign bond yields rose across the board, while equity indices edged lower in the US and the euro area.
- Yesterday, Christine Lagarde remarked that wage growth in the euro area remains robust still, and inflation is not fully under control, while ECB’s policymaker Yannis Stournaras said that the first rate cut might happen by the end of the first semester if inflation continues to cool.
- Elsewhere, data released this morning confirmed January inflation in Japan moderated to 2.2% yoy (vs. 1.9% expected) from 2.6% in December, boosting expectations the BoJ will exit its negative-interest rate policy. The yen strengthened slightly against the dollar and the Nikkei 225, which yesterday had hit new 30-year highs, has been trading mostly flat.